2017 is winding down, and you’re probably thinking about your goals and dreams for 2018. Do you want to buy a new home? Become a home owner for the first time? Maybe you’re unsure if it’s even a good time to be entering the market as either a buyer OR a seller. The real estate market is constantly fluctuating – no one can tell exactly what will happen. But what we can do is study the data to make educated predictions.
- Inventory Will Be Low
Inman predicts that the low inventory of homes available for sale well continue to push up prices. Seasoned buyer, who know how to negotiate, will come out on to. This also means there is a barrier for first time home buyers – but it’s not all bad news for them because…
- Builders will focus on entry-level homes
When you think of custom build, you probably think expensive finishes and touches in a large home. And this typically what we’ve seen in the past. But because of how low housing starts have been, this could change in 2018. We could see more custom build for lower price points.
- More Millennial Buyers
In 2017, 40% of home buyers taking out mortgages were considered millennials. Since most in this age group are now in this 20s-30s, that number is expected to raise to 43%. So while prices are only to get higher, there is a silver lining in that millennials are making more to be able to match it.
- Potential Tax Reform
It is difficult to predict exactly what the proposed changes to our country’s current tax system could mean from real estate. If it passes in its current form, we could see the drop-in home prices, particular in more expensive areas.
- Introduction of Generation Z
If you’ve grown tired of reading about millennials – a new demographic is about to enter the housing world. Generation Z, described at the generation born post 1995, is graduating college and entering the job market. While we have information about their personalities, what this means for the housing market is yet to be seen – we just know we’ll see more of them.
No matter what the market brings in 2018, you need to make decisions based what is right for you and your situation. If it’s time to sell or buy, generalized numbers should not stop you. Market data is only a tool. This is where a good realtor comes in – to provide guidance and market your home to sell, regardless of the real state climate.